EU Finds China Gives Aid to Huawei, ZTE

A European Commission investigation found Huawei Technologies Co. and ZTE Corp., China's largest telecommunications equipment makers, benefit from significant Chinese government support, including "massive" credit lines from state-owned banks.

The findings, detailed in a confidential commission report, are likely to fuel further debate regarding the treatment of the large subsidies that—according to Western governments and companies -- Chinese businesses receive from Beijing. Western trade experts say Huawei, which has rapidly grown to become the world's No. 2 telecommunications-equipment maker, is a compelling example of a Chinese company that has been nurtured into a global player using such subsidies. Both Huawei and ZTE have denied receiving subsidies from the Chinese government.